Mauritius economic outlook

Mauritius, a picturesque island nation in the Indian Ocean, is experiencing a robust economic recovery post-COVID, in stark contrast to the challenges faced by its African neighbors. Standard Bank Group has been closely monitoring the economic landscape in Mauritius and highlights the key drivers of growth and resilience in the Mauritian economy. The tourism sector, a vital pillar of the economy contributing more than 7% of its GDP and employing over 25,000 people, has seen a remarkable rebound. Despite pandemic-induced setbacks, Mauritius witnessed record tourist arrivals in 2018 and 2019, with 2020 showing promising signs of recovery. The quality of tourists, who spent more time on the island, contributed significantly to the sector's success. Moreover, other sectors such as finance, ICT, manufacturing, and education are also thriving, positioning Mauritius for a positive economic trajectory. The country's GDP grew by 9.1% in the previous year and is forecasted to expand by 4% to 4.1% in 2023. Innovative trends like renewable energy, pharmaceuticals, and medical devices manufacturing, alongside the establishment of renowned universities, are bolstering economic diversification and growth. Inflation remains a concern, with an inflation rate of 11.1%, primarily driven by external factors like currency fluctuations. The Central Bank of Mauritius has implemented proactive measures to stabilize prices and curb inflation. While challenges persist, Mauritius stands out for its resilient economy and strategic initiatives driving sustainable growth. With a focus on key sectors and prudent policies, Mauritius is poised to navigate global uncertainties and capitalize on emerging opportunities.